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Updated over 9 years ago on . Most recent reply
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Capital Gains and Tax Returns
Hello, I am a young investor that flips vacant land for a living. I am looking to build a small house for myself next year, and am trying to figure out how to qualify for a mortgage. Up until this point I have NO proof of income such as tax returns etc. All that I have is bank statements to show profits.
I am trying to decide wether it will help me qualify for a mortgage if I claim profits as capital gains on taxes for 2015; are capital gains considered "verifiable income?" I sell all my properties through my name thus far as opposed to through a llc. I do plan to create a LLC. shortly, but will not file taxes as an LLC before I would like to have the home built. If it helps I made approximately 60k in capital gains last year, have no debt, and a 670ish credit score due to my small amount of credit as I have always worked with cash so far. The home I plan to build should be around 125k, and I expect to put 20-25% down.
Any advice would be appreciated!